UK car sales surge in typically quiet month

UK car sales surged in February as train fares rose at the steepest annual clip in more than a decade.

New car registrations rose 26.2% to 74,441 in February, according to data from the Society of Motor Manufacturers and Traders, despite the cost of living crisis weighing on British households.

February also saw almost universal growth across the market, with deliveries to private buyers up 5.8% and those to large fleets up 46.2%. Business registrations, which make up a fraction of the market, rose 0.7% - equivalent to just nine units.

There was also growth in all but two segments, with only registrations of executive and luxury saloon cars falling, by 15.4% and 6.3%, respectively.

Minis registration rose 66.1%, multipurpose vehicles sales were 41.9% higher and superminis registrations increased 37.7% and accounted for 33.1% of all deliveries.

Plug-in electric vehicles accounted for 22.8% of all deliveries last month, with almost half a million hybrid electric vehicles and plug-in hybrids now expected to hit the road before the end of 2023.

Although February has traditionally been a low volume month ahead of the March plate change, 2023's result marked the seventh straight month of growth, with easing supply chain shortages steering the market closer to pre-Covid levels.

The increase also comes hot on the heels of a 5.9% increase in train fares across England and Wales despite record levels of poor reliability. It also marks the largest annual increase in fares since a 6.1% hike in 2012.

SMMT chief executive Mike Hawes said: "After seven months of growth, it is no surprise that the UK automotive sector is facing the future with growing confidence. It is vital, however, that government takes every opportunity to back the market, which plays a significant role in Britain's economy and net zero ambition.

"As we move into 'new plate month' in March, with more of the latest high-tech cars available, the upcoming Budget must deliver measures that drive this transition, increasing affordability and ease of charging for all."

Reporting by Iain Gilbert at Sharecast.com